Cameron: UK's economic recovery will need 'patience'

Prime Minister David Cameron has told the BBC that a sustained economic recovery must be one which is balanced between "north and south".

Speaking at the World Economic Forum in Davos, the prime minister said that the economy needs rebalancing.

He said: "In the case of Britain we need to rebalance our economy and make sure it's a north and south recovery - manufacturing as well as services."

But Mr Cameron said that economic recovery will take "patience".

He added that the government needs to deal with "excessive deficits and our broken banking system", but he was confident that the UK could attract investment and manufacturers.

Housing bubble?

"We are a very welcoming economy," he said.

When asked if people would see an improvement in their living standards, he said that there have been positive movements in employment. And, he said in the interview with BBC business editor Robert Peston: "We are seeing positive signs on take-home pay."

When asked if he was concerned by a potential housing bubble or other asset bubble in the UK, Mr Cameron said that the Bank of England was fully independent, and that it was the Bank's job to "identify" and to "deal with" any asset bubble.

"We should leave it to them, not politicians."

But he said that a recovery in the housing market was "welcome".

"You do need a market where people can buy houses, move house, find work, and that drives a lot of activity in the economy," the prime minister said.

Mr Cameron said the economic revival needed to be balanced, and that "living within our means" was vital to a sustained global recovery.